The Central Government has announced a temporary exemption from all customs duties on cotton imports from 1st June 2026 to 30th October 2026, in a move aimed at improving cotton availability for India’s textile sector and supporting downstream manufacturing.
The duty exemption is expected to lower input costs across the textile and apparel value chain, providing targeted relief to manufacturers while helping ensure adequate cotton supplies in the domestic market. The measure is also intended to balance the needs of the industry with the interests of domestic cotton farmers.
Industry observers expect the decision to benefit the broader textile sector, particularly small and medium-sized enterprises, by improving access to raw materials and supporting production activity.
The government had previously removed cotton import duties between August and December 2025, when elevated US tariffs had begun affecting manufacturing activity and investment sentiment. As the textile and apparel sector remains one of India’s largest sources of employment, industry stakeholders have continued to emphasise the importance of reliable access to high-quality cotton.
The latest exemption comes amid concerns over a persistent demand-supply gap in the domestic cotton market. Industry representatives, including spinning mills and garment exporters, have repeatedly called for a reduction or removal of import duties to ensure adequate raw material availability and maintain the global competitiveness of Indian textile exports.
Stakeholders have argued that lower-cost cotton imports would help ease pressure on manufacturers, support export growth and strengthen the sector’s ability to compete with rival textile-producing nations.
